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US ISM services index rises more than forecast to 55.7 in April

The pace of growth in the US economy's service sector increased in April, according to an industry report released on Wednesday.

PHOTO: EPA

[NEW YORK] The pace of growth in the US economy's service sector increased in April, according to an industry report released on Wednesday.

The Institute for Supply Management (ISM) said its index of non-manufacturing activity rose to 55.7 from 54.5 the month before. The reading was above expectations of 54.7 from a Reuters poll of economists.

A reading above 50 indicates expansion in the service sector and a reading below 50 indicates contraction.

The business activity index fell to 58.8 from 59.8 the month before. That was just below expectations of 59.2.

The employment index rose to 53.0 from 50.3 a month earlier. New orders climbed to 59.9 from 56.7. The prices paid index rose to 53.4 from 49.1.